It Is Unlikely That Greater Control by Shareholders Will Lead

question 15

Multiple Choice

It is unlikely that greater control by shareholders will lead to greater corporate social responsibility because:

• A)most shareholders are motivated by maximizing profits and are unlikely to approve corporate actions contrary to that end.
• B)many shareholders have access to the information necessary to closely monitor the noneconomic performance of a company.
• C)there is a definite chance that the values of "ethical" shareholders would be representative of society as a whole.
• D)shareholders will have the power to adopt resolutions binding the corporate managers.

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The current worth of a future sum of money or stream of cash flows, given a specific rate of return.

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The prevailing price or interest rate available in the marketplace for goods, services, or securities.

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